Ashok Chandra, MD and CEO of Punjab National Bank (PNB), told BusinessLine that credit growth this quarter could add up to 2 percentage points to overall growth, with retail, agri and MSME lending expected to rise by at least 1–2% more. The bank used its entire FCNR(B) deposit pool, about $2.7 billion, to repay high-cost bulk deposits and certificates of deposit, lifting domestic NIM by 10 basis points and global NIM by 8 basis points in one quarter. He expects overall credit growth of 14–15% this quarter, with MSME growth of 21–22% and agri growth of 18–19%. Loan rates are repriced the next working day after any change, with about 7 basis points of benefit expected from the recent repo hike, while deposit rates are expected to stay elevated for now. PNB plans to raise around $1 billion via MTN and has board approval for about ₹10,000 crore of infrastructure bonds, with timing dependent on market conditions.
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